Question
1. A company will pay a dividend of $3 next quarter in perpetuity. If the quarterly return is 4 percent, then the price of the
1. A company will pay a dividend of $3 next quarter in perpetuity. If the quarterly return is 4 percent, then the price of the stock is $75.
Select one:
True
False
2 How much do you need to save today to get $110,507.80 in four years if the bank pays 2 percent of interest compounded monthly?
Select one:
a. None of THESE
b. $42,715.42
c. $102,018.35
d. $68,543.62
e. $56,381.53
3, Which of the following statements is true?
Select one:
a. In a limited partnership general managers have limited liability.
b. All of THESE are true
c. The shareholders of a corporation do not need to run the business operations to get revenues.
d. In a sole proprietorship the business creditor cannot claim the owners personal property if the business goes bankrupt.
e. None of THESE are true
4.If you invest $100 at an annual rate of 12% compounded monthly, youll get $106.15 at the end of six months
Select one:
True
False
5.Corporations issue shares of common stock in the secondary market
True
False
6. Investing in common stock benefits shareholders by the amount of dividends received and share price appreciation.
Select one:
True
False
7. In five years you will need to make a down payment on a house that costs $200,000 today. The house price is expected to increase by 4% each year in the next five years. If the down payment is 20 percent of the total house price in five years, then the down payment will be_______.
Select one:
a. $164,385.42
b. $48,666.12
c. None of THESE
d. $41,600
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